Chapter 3 Assignment - Chapter #3 Assignment 1. What are...

Chapter #3 Assignment 1. What are the determinants of demand? What happens to the demand curve when each of these determinants changes? Distinguish between a change in demand and a change in the quantity demanded, noting the cause(s) of each. The basic determinants of demand are consumers’ tastes (preferences), the number of buyers in the market, consumers’ incomes, the prices of related goods, and consumer expectations. A change in one or more of the determinants of demand will change the demand data by shifting the demand curve. A decrease in demand shifts the curve to the left; an increase shifts it to the right. A change in the quantity demanded shifts to the right for an increase and left when there’s a decrease. 2. Explain the law of supply. Why does the supply curve slope upward? How is the market supply curve derived from the supply curves of individual producers? As the price rises, the quantity supplied rises; as price falls, the quantity supplied

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